Salary Increases: Ontario and Saskatchewan Lead the Way

Despite a small percentage of firms freezing salaries for 2026, the typical company plans salary increases of 3.5%, reflecting steady wage growth across the profession. Ontario and Saskatchewan firms are slightly ahead of the curve, budgeting 3.7% increases, outpacing the national average. For firms seeking to remain competitive in tight labour markets, these figures provide a critical benchmark.

Incentives: A Mixed but Maturing Picture

Most consulting engineering firms recognize the importance of performance-based rewards. Eighty-five percent offer an annual incentive plan for their professionals. While the majority (61%) of these plans remain discretionary in nature, performance-based structures are gaining ground, with 44% of firms tying bonuses directly to individual or organizational performance.

One in five firms also provide profit-sharing arrangements, reflecting a growing recognition of the link between firm success and employee engagement. For firms with defined targets, bonuses for their professional staff typically range from 7% to 12% of base salary.

Benefits: Expanding Beyond the Basics

Group insurance remains the backbone of employee benefits, with 79% of firms offering traditional plans and another 21% adopting flexible benefit arrangements. WCBC also notes a rising emphasis on wellness: nearly one-quarter of companies now provide wellness accounts, signaling that firms are broadening their approach to employee wellbeing.

Retirement savings are equally important. Eighty-one percent of firms provide a retirement plan, most commonly a defined contribution arrangement such as a Group RRSP or DC pension plan. The typical employer contribution for professional positions sits at four percent of salary, an important investment in long-term financial security.

Paid Time Off and Leave Practices

Vacation remains structured and tenure-based. A typical engineer or scientist begins with three weeks of vacation, with entitlement increasing after five years of service. The ceiling most often tops out at five weeks, reached after approximately 15 years of service.

This year marks a significant shift in parental benefits. For the first time, more than half of companies (56%) are topping up Employment Insurance benefits during maternity and parental leave.

Pay Transparency: A Work in Progress

Pay transparency is top of mind with legislation in some jurisdictions requiring salary ranges in job postings. However, consulting engineering firms remain cautious. Ninety-three percent report that salaries and ranges are not fully transparent internally, with employees typically only aware of the range that applies to their current role.

When it comes to job postings, most firms are limiting disclosure to jurisdictions where it is required by law, rather than adopting organization-wide transparency policies. This cautious approach underscores the complexities many employers are grappling with as legislation evolves.

Flexible Work Arrangements: Is the Norm

Nearly all firms (95%) allow employees to work from home at least part of the time, while 92% offer flex-time arrangements. More than half (55%) provide phased retirement options, enabling senior professionals to gradually reduce their workload while supporting knowledge transfer to the next generation.

Human Resources Priorities: Retention Tops the List

Looking ahead to 2026, firms have identified three clear human resources priorities:

1. Retaining employees
2. Attracting new employees
3. Developing top performers

These priorities reflect a challenging labour market where turnover and skills shortages remain pressing issues.

Turnover: A Persistent Challenge

Every firm surveyed reported some turnover last year, with most losing between 5% and 15% of their workforce, a level that has remained relatively consistent over time. Almost half of this was voluntary turnover.

Why are employees leaving? The top three reasons are:

1. Pursuit of career growth and advancement opportunities
2. Compensation
3. Exiting the consulting industry altogether

In response, firms are taking action by increasing pay, promoting work-life balance, and expanding internal career pathways to mitigate losses.

Recruiting for Growth

Despite turnover challenges, the outlook is growth-oriented. Seventy-seven percent of firms plan to expand in 2025, aiming to increase headcount by 5% to 10%. At the same time, 69% report difficulties attracting new employees. To address this, firms are improving onboarding processes, raising compensation, and diversifying recruitment strategies to tap into broader talent pools.